The Catt, Dogg, and Eustus partnership was dissolved by the partners in early 2011.On March 1, the partners prepared the following financial statement before commencement of final liquidation:
Liquidation events in March were as follows:
- Receivables recorded at $120,000 were collected at $110,000;
- Inventory recorded at cost of $80,000 was sold for $60,000;
- Plant assets with a book value of $100,000 were sold for $140,000.
Required:
Determine how the available cash on March 31, 2011 should be distributed.

Question

The Catt, Dogg, and Eustus partnership was dissolved by the partners in early 2011.On March 1, the partners prepared the following financial statement before commencement of final liquidation:
  Liquidation events in March were as follows:
- Receivables recorded at $120,000 were collected at $110,000;
- Inventory recorded at cost of $80,000 was sold for $60,000;
- Plant assets with a book value of $100,000 were sold for $140,000.
Required:
Determine how the available cash on March 31, 2011 should be distributed.

Quizplus · Accepted Answer

The Answer of The Catt, Dogg, and Eustus partnership was dissolved by the partners in early 2011.On March 1, the partners prepared the following financial statement before commencement of final liquidation:
  Liquidation events in March were as follows:
- Receivables recorded at $120,000 were collected at $110,000;
- Inventory recorded at cost of $80,000 was sold for $60,000;
- Plant assets with a book value of $100,000 were sold for $140,000.
Required:
Determine how the available cash on March 31, 2011 should be distributed.

The Catt, Dogg, and Eustus Partnership Was Dissolved by the Partners